Rosenbauer International AG / Half-year financial results 2017

Published: August 11, 2017; 08:00 · (FriedlNews)

Revenue and earnings development The Rosenbauer Group generated revenues of EUR 393.6 million in the first half of 2017 (1-6/2016: EUR 383.4 million). While decreases in deliveries were observed in some Middle Eastern countries, deliveries were on the rise in parts of Europe, such as the Netherlands.

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Revenue and earnings development The Rosenbauer Group generated revenues of EUR 393.6 million in the first half of 2017 (1-6/2016: EUR 383.4 million). While decreases in deliveries were observed in some Middle Eastern countries, deliveries were on the rise in parts of Europe, such as the Netherlands.

EBIT was down on the previous year at EUR 2.7 million in the first half of the year (1-6/2016: EUR 18.8 million). The results for the first half of the year were reduced by weak capacity utilization on account of the political situation in the Gulf States and the resulting lower coverage of fixed costs at the plants in Leonding, combined with the significantly higher start-up costs of the platform manufacturer Rosenbauer Rovereto. In addition, one-time costs for the reorganization of the staff structure in Austria, impairment losses on intangible assets and exchange rate effects also led to an unplanned deviation in results for the first half of the year.

Consolidated EBT for the reporting period amounted to EUR 3.7 million (1-6/2016: EUR 17.1 million).

Orders The Rosenbauer Group enjoyed satisfactory order development in the first six months of the year, with incoming orders of EUR 458.3 million (1-6/2016: EUR 376.5 million). While incoming orders decreased significantly in countries that are dependent on oil and commodity prices or that had to restructure their budgets due to conflicts, incoming orders were up in North America and in some parts of Europe. The order backlog as of June 30, 2017 was on par with the previous year's level at EUR 812.0 million (June 30, 2016: EUR 812.9 million).

Financial and net assets position For reasons specific to the industry, the structure of the statements of financial position during the year is characterized by high working capital. This is due to the turnaround times of several months for vehicles in production. Total assets are therefore relatively high during the year at EUR 685.4 million (June 30, 2016: EUR 695.0 million). As a result of the delivery volume in the second half of the year, inventories were up in the reporting period at EUR 224.7 million (June 30, 2016: EUR 208.4 million), while construction contracts were down slightly on the previous year on account of deliveries at EUR 98.5 million (June 30, 2016: EUR 101.8 million). Current receivables were reduced to EUR 165.2 million (June 30, 2016: EUR 181.3 million). The Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) decreased year-on-year to EUR 247.9 million (June 30, 2016: EUR 261.6 million).

Owing to the high level of working capital, especially in inventories, the intra-year cash flow from operating activities is still negative compared to the end of 2016 at EUR -51.7 million (1-6/2016: EUR -31.2 million). An improvement in the cash flow from operating activities is expected by the end of the year.

Outlook A similar development to the previous year is expected on the global firefighting markets in 2017. The uncertainty regarding the development of the firefighting markets has increased tangibly in recent months. Political tension and the low price of oil could affect growth on certain markets in 2017 as well. Overall, however, stable development in global demand for firefighting technology is assumed.

The Group will continue to focus on efficiency enhancement and cost reduction to ensure that the intended growth can be implemented on a solid financial basis. In addition, far-reaching changes have been made in Rosenbauer's management and organizational structure that led to non-recurring expenses.

Owing to project-related lower capacity utilization and the change in the production program, the one-time effects described above and the limited visibility with regard to currency developments, the Executive Board has revised its outlook for 2017 and is now forecasting an EBIT margin after extraordinary effects of around 3% with consolidated revenues at a consistent level.

Further inquiry note: Rosenbauer International AG

Gerda Königstorfer, Company Spokesperson / Investor Relations

Phone: +43 732 67 94-568 E-Mail: ir@rosenbauer.com

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